Correlation Between Victory Capital and Gladstone Capital
Can any of the company-specific risk be diversified away by investing in both Victory Capital and Gladstone Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Victory Capital and Gladstone Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Capital Holdings and Gladstone Capital, you can compare the effects of market volatilities on Victory Capital and Gladstone Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Victory Capital with a short position of Gladstone Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Capital and Gladstone Capital.
Diversification Opportunities for Victory Capital and Gladstone Capital
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Victory and Gladstone is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Victory Capital Holdings and Gladstone Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Capital and Victory Capital is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Victory Capital Holdings are associated (or correlated) with Gladstone Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Capital has no effect on the direction of Victory Capital i.e., Victory Capital and Gladstone Capital go up and down completely randomly.
Pair Corralation between Victory Capital and Gladstone Capital
Given the investment horizon of 90 days Victory Capital Holdings is expected to generate 1.62 times more return on investment than Gladstone Capital. However, Victory Capital is 1.62 times more volatile than Gladstone Capital. It trades about 0.11 of its potential returns per unit of risk. Gladstone Capital is currently generating about 0.09 per unit of risk. If you would invest 2,645 in Victory Capital Holdings on August 27, 2024 and sell it today you would earn a total of 4,191 from holding Victory Capital Holdings or generate 158.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Capital Holdings vs. Gladstone Capital
Performance |
| Timeline |
| Victory Capital Holdings |
| Gladstone Capital |
Victory Capital and Gladstone Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Capital and Gladstone Capital
The main advantage of trading using opposite Victory Capital and Gladstone Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Capital position performs unexpectedly, Gladstone Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gladstone Capital will offset losses from the drop in Gladstone Capital's long position.| Victory Capital vs. Federated Premier Municipal | Victory Capital vs. Blackrock Muniyield | Victory Capital vs. Diamond Hill Investment | Victory Capital vs. NXG NextGen Infrastructure |
| Gladstone Capital vs. Main Street Capital | Gladstone Capital vs. PennantPark Floating Rate | Gladstone Capital vs. Horizon Technology Finance | Gladstone Capital vs. Prospect Capital |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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